Donald Trump discussed how to mitigate the impact of a possible months-long U.S. blockade of Iran’s ports with U.S. oil companies, a White House official said on Wednesday, as the U.S. president urged Tehran to ‘get smart soon’ and sign a deal.
The talks with oil executives on Tuesday followed days of deadlock in efforts to resolve the conflict, which has led the U.S. to try to squeeze Iran’s oil exports with a naval blockade to try to force it to reopen the Strait of Hormuz to shipping.
In a post on Truth Social on Wednesday before details of the meeting emerged, Trump, who has said Iran can call if it wants to talk, said the country “couldn’t get its act together”.
Trump’s talks with energy executives addressed potential steps to calm oil markets if it is necessary to continue the blockade of Iranian ports for months, a White House official said, adding they discussed U.S. oil production, oil futures, shipping and natural gas.
Oil prices rose almost 4% on Wednesday, with the Brent contract hitting a one-month high, after an initial report in the Wall Street Journal said the U.S. may extend its blockade.
Iran has pledged to continue disrupting traffic through the strait as long as it is threatened, which may mean more Middle East oil supply disruptions from the conflict, which has killed thousands and caused global economic upheaval.
Tehran warned on Wednesday of “unprecedented military action” against continued U.S. blockading of Iran-linked vessels. Trump has stressed repeatedly that Iran cannot have a nuclear weapon, while Tehran denies pursuing such a goal and insist on its right to a civilian nuclear programme.
“They don’t know how to sign a nonnuclear deal. They’d better get smart soon!” Trump said in the post, without explaining what such a deal would entail.
It featured a mock-up image of him in dark glasses and wielding a machine gun with the caption “No more Mr. Nice Guy.”
IRAN’S ECONOMY UNDER PRESSURE AS CURRENCY PLUMMETS
Iran wants U.S. acknowledgment of its right to enrich uranium for what it says are peaceful, civilian purposes. It has a stockpile of roughly 440 kilograms (970 pounds) of uranium enriched to 60%, material that could be used for several nuclear weapons if further enriched.
Iranian officials said on Tuesday the country could withstand the blockade as it was using alternative trade routes, and the Islamic Republic did not consider the war over.
In a sign of the economic toll the war is taking on Iran’s economy, its currency fell to a record low of 1,810,000 rials to the U.S. dollar on Wednesday, the Iranian Students’ News Agency said, as demand for foreign currency that built up during six weeks of fighting is now flowing into the open market.
The rial has seen its value fall by nearly 15% in the last two days alone, ISNA reported.
Inflation for the Iranian month running from March 20 to April 20 was 65.8%, the central bank said, a trend which is likely to be exacerbated by the currency’s plunge.
IRAN WANTS FORMAL END TO CONFLICT FIRST
Iran’s latest offer for resolving the war, suspended since April 8 under a ceasefire agreement, would set aside discussion of its nuclear programme until the conflict is formally ended and shipping issues resolved. However, this did not meet Trump’s demand to address the nuclear issue at the outset.
U.S. intelligence agencies, at the request of senior administration officials, are studying how Iran would respond if Trump were to declare a unilateral victory, two U.S. officials and a person familiar with the matter told Reuters.
Tehran has largely blocked all shipping apart from its own from the Gulf through the Strait of Hormuz, a chokepoint for global energy supplies, since the war began on February 28. This month, the U.S. began blockading Iranian ships.
PRESSURE ON TRUMP TO END COSTLY WAR
Iran no longer has a single, undisputed clerical arbiter at the pinnacle of power since several senior Iranian political and military figures, including Supreme Leader Ayatollah Ali Khamenei, were killed in U.S.-Israeli strikes.
The elevation of Khamenei’s wounded son, Mojtaba, to replace him has handed more power to hardline commanders of the Islamic Revolutionary Guard Corps, Iranian officials and analysts say.
Meanwhile, Trump is under domestic pressure to end a war for which he has given shifting rationales to a U.S. public struggling with surging gasoline prices. His approval rating fell to the lowest level of his current term, according to a Reuters/Ipsos poll, which showed 34% of Americans approve of his performance, down from 36% in the prior survey.
Governments, particularly in Asia, are looking to conserve fuel and spending billions of dollars in subsidies. The European Union loosened state aid rules to let member states compensate agriculture, fisheries and transport firms for extra fuel and fertiliser costs till the end of 2026 but has yet to curb use.
Source: Reuters
--Agencies
